This year, Vietnam targets economic growth of 2% in normal conditions and 2.5% if favorable factors emerge.

The government is responsible for not only promoting innovation in the banking sector, but also maintaining stability and safety of the financial market.

The average mobilizing interest rates as of the end of July declined by 0.6 percentage points per annum against late 2019, creating conditions for lower lending rates.

State firms that have completed the privatization process are expected to float shares on local bourses and create space for more foreign investors to invest in the local stock market.

The central bank suggested the move is necessary to ensure efficiency of existing preferential rates policy for customers amid the Covid-19 pandemic.

Vietnam trading activities would benefit from a stable exchange market, which is the central bank's target to buy in foreign currency, said banking expert Nguyen Tri Hieu.

This resulted in more than VND46 trillion (US$2 billion) being pumped into the economy.

Cutting deposit interest rates on required reserve of commercial banks is not a further monetary easing.

Lower interest rates of deposit of required reserves and deposit of non-required reserves are expected to encourage commercial banks to inject more cash into the economy.